Disney's ESPN App Fuels Streaming Growth

In 2025, Disney has demonstrated a strong rebound in its streaming services, even as the broader S&P 500 index outpaced its stock performance. The launch of the ESPN app in August 2025 has been highlighted as a significant success, attracting new customers and offering a compelling alternative for sports fans seeking to cut cable subscriptions. This strategic move underscores Disney's commitment to its premier sports entertainment brand.

The direct-to-consumer segment, excluding ESPN, also showed robust growth. In fiscal 2025, Disney+ welcomed 8.9 million new subscribers, reaching a total of 131.6 million, and Hulu expanded to 64.1 million subscribers. This segment achieved $1.3 billion in operating income, a substantial increase from the previous year, solidifying Disney's position in the competitive streaming landscape with its vast content library and intellectual property.

Looking towards 2026, continued investor focus will be on Disney's streaming operations and the expansion of its experiences division. The experiences segment, which generated $10 billion in operating income on $36.2 billion in revenue in fiscal 2025, remains Disney's most profitable. The company is actively investing in new attractions and its cruise fleet, aiming to further capitalize on this lucrative market and engage more fans.